May 30 2018 at 08:29
So ESMA started to mess up the trading in Europe earlier than expected.
Got this email today. It is 29th MAY and the email says it will be applied since 28th May :)
Dear Client,
We would like to inform you about a new leverage limitation for EU clients which came into effect starting 28th of May, 2018. The leverage for all the clients from the European Union has been reduced to 1:50.
Please note that this restriction applies to both current clients and newly registered customers. We recommend to consider updated conditions when opening new trades.
All changes are made in accordance with the requirement of the European Securities and Markets Authority (ESMA)
Thank you.
Best Regards,
ForexMart Team
Got this email today. It is 29th MAY and the email says it will be applied since 28th May :)
Dear Client,
We would like to inform you about a new leverage limitation for EU clients which came into effect starting 28th of May, 2018. The leverage for all the clients from the European Union has been reduced to 1:50.
Please note that this restriction applies to both current clients and newly registered customers. We recommend to consider updated conditions when opening new trades.
All changes are made in accordance with the requirement of the European Securities and Markets Authority (ESMA)
Thank you.
Best Regards,
ForexMart Team
May 30 2018 at 13:20
I believe the Team of the ForexMart did not understand correctly :)
ESMA restriction should become in force 2 months after publishing in Official Journal of the EU, but as far as I know ESMA still did not proceed with publishing. :)
ESMA restriction should become in force 2 months after publishing in Official Journal of the EU, but as far as I know ESMA still did not proceed with publishing. :)
May 31 2018 at 06:13
Great Input indeed, this will change the whole picture of margin trading. However applying the new rules from 28th of May, 2018 is strange, I do not see any official publication in their web site for finally adopting the changes...
Accept the loss as experience
May 31 2018 at 11:55
Yeah I guess they understood it wrong, so it is good to know about that broker :)
In anyway leverage will be 1:30 which is quite draconian.
In anyway leverage will be 1:30 which is quite draconian.
Jun 01 2018 at 12:21
My broker started to apply ESMA regulations from Saturday 26th May 2018.
Jun 02 2018 at 05:24
To trade lots with actual size, will be necessary an account maybe ten times bigger, plus it will be the restriction with 50% DD of account, so when the DD reaches 50% of the account, from what I understood all trades will be closed for account 'protection/preservation'.
In the end there will be no more retail Forex traders in Europe, we have to find brokers accepting poor Europeans looking for better conditions to trade.
In the end there will be no more retail Forex traders in Europe, we have to find brokers accepting poor Europeans looking for better conditions to trade.
Jun 03 2018 at 06:09
Sceadagenga posted:
My broker started to apply ESMA regulations from Saturday 26th May 2018.
Which broker is it?
Jun 04 2018 at 10:50
ovisun posted:
To trade lots with actual size, will be necessary an account maybe ten times bigger, plus it will be the restriction with 50% DD of account, so when the DD reaches 50% of the account, from what I understood all trades will be closed for account 'protection/preservation'.
In the end there will be no more retail Forex traders in Europe, we have to find brokers accepting poor Europeans looking for better conditions to trade.
Exactly, I am already looking on brokers not affected by ESMA
Jun 04 2018 at 11:01
ETX is the broker
Here is the e-mail I received on the 18th May 2018.
View Online
Username: XXXXXXXXXXXXXXXXXXXX
Forgot your password?
ETX Capital
Dear XXXXXXXXXXXXXX,
This is a gentle reminder that the new 50% margin close-out rule will come into effect in 1 week's time on 26th May.
This is the first of a number of changes the European Securities and Market Authority (ESMA) will be introducing that will impact your trading activity with us. As a highly valued ETX trader, we are committed to making these new requirements as manageable as possible for you.
Please note, the close-out rule will apply to Retail and Professional clients in this instance. If you are still unsure of the impact of the 50% close-out rule on your trading, simply get in touch with our Client Services team, who will help you with any questions on +44 (0) 20 7392 1494 or customer.service@etxcapital.com.
How will the new margin close-out rule work from 26th May? •When your account equity falls below 100% of the minimum required margin for your open position(s), you are at risk of being closed out.
•Once your equity falls below 50%, your positions are reduced to bring your account equity back over 50%.
•Any open positions on 26th May will become subject to the new margin close-out rules.
Example scenario under the new 50% close out rule
You have £1,000 in your account and you open a UK 100 position that requires £500 margin. If that position runs a loss of £750, you will have £250 equity remaining after the running loss, which is 50% of the £500 margin required to cover the open position. In this scenario, under the new rules, we will need to reduce or close this position until your account equity reaches 50% of the £500 margin required to cover the open position.
Kind regards,
ETX Capital
Here is the e-mail I received on the 18th May 2018.
View Online
Username: XXXXXXXXXXXXXXXXXXXX
Forgot your password?
ETX Capital
Dear XXXXXXXXXXXXXX,
This is a gentle reminder that the new 50% margin close-out rule will come into effect in 1 week's time on 26th May.
This is the first of a number of changes the European Securities and Market Authority (ESMA) will be introducing that will impact your trading activity with us. As a highly valued ETX trader, we are committed to making these new requirements as manageable as possible for you.
Please note, the close-out rule will apply to Retail and Professional clients in this instance. If you are still unsure of the impact of the 50% close-out rule on your trading, simply get in touch with our Client Services team, who will help you with any questions on +44 (0) 20 7392 1494 or customer.service@etxcapital.com.
How will the new margin close-out rule work from 26th May? •When your account equity falls below 100% of the minimum required margin for your open position(s), you are at risk of being closed out.
•Once your equity falls below 50%, your positions are reduced to bring your account equity back over 50%.
•Any open positions on 26th May will become subject to the new margin close-out rules.
Example scenario under the new 50% close out rule
You have £1,000 in your account and you open a UK 100 position that requires £500 margin. If that position runs a loss of £750, you will have £250 equity remaining after the running loss, which is 50% of the £500 margin required to cover the open position. In this scenario, under the new rules, we will need to reduce or close this position until your account equity reaches 50% of the £500 margin required to cover the open position.
Kind regards,
ETX Capital
Jun 05 2018 at 06:32
Sceadagenga posted:
ETX is the broker
Here is the e-mail I received on the 18th May 2018.
View Online
Username: XXXXXXXXXXXXXXXXXXXX
Forgot your password?
ETX Capital
Dear XXXXXXXXXXXXXX,
This is a gentle reminder that the new 50% margin close-out rule will come into effect in 1 week's time on 26th May.
This is the first of a number of changes the European Securities and Market Authority (ESMA) will be introducing that will impact your trading activity with us. As a highly valued ETX trader, we are committed to making these new requirements as manageable as possible for you.
Please note, the close-out rule will apply to Retail and Professional clients in this instance. If you are still unsure of the impact of the 50% close-out rule on your trading, simply get in touch with our Client Services team, who will help you with any questions on +44 (0) 20 7392 1494 or customer.service@etxcapital.com.
How will the new margin close-out rule work from 26th May? •When your account equity falls below 100% of the minimum required margin for your open position(s), you are at risk of being closed out.
•Once your equity falls below 50%, your positions are reduced to bring your account equity back over 50%.
•Any open positions on 26th May will become subject to the new margin close-out rules.
Example scenario under the new 50% close out rule
You have £1,000 in your account and you open a UK 100 position that requires £500 margin. If that position runs a loss of £750, you will have £250 equity remaining after the running loss, which is 50% of the £500 margin required to cover the open position. In this scenario, under the new rules, we will need to reduce or close this position until your account equity reaches 50% of the £500 margin required to cover the open position.
Kind regards,
ETX Capital
I do not know the broker, but their explanation and understanding of the margin and equity is weak.
I recommend you change the broker
